AIM listed Nostra Terra, the oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, has completed the acquisition of a 100% Working Interest ("WI") in the Caballos Creek Oil Field, which is located in Atascosa County Texas.

Highlights

• Acquisition completed in one month from asset identification
• Financed 100% without dilution
• Immediately accretive in terms of cashflow and production
• 30 bopd current production (gross), which increases Company-wide production by circa 25%
• Additional acquisitions being assessed

On 2 September 2020, Nostra Terra entered into a contract to acquire 100% WI in the Caballos Creek oil field, a producing asset in Atascosa County Texas. The acquisition has now been completed and Nostra Terra has taken over operations of the field.

Nostra Terra will be performing work to further assess additional upside in the field. This will include: review of well files (particularly well interventions and production records), review of logs, depth structure mapping on key reservoirs, identifying locations for additional drilling, calculating net pay and volumes, and other associated activities. Following this, reservoir and production engineering aspects will be reviewed with the target of updating the reserves and economics and determining the extent and relative rank of the upside opportunities.

The acquisition of this asset is consistent with Nostra Terra continuing to execute on its stated plan. As previously described, the acquisition delivers further expansion and diversification of the portfolio, conventional producing assets, with relatively low operating costs.

Additional Acquisitions

Nostra Terra is seeking to make further accretive acquisitions at this time, targeting assets with proven reserves (primarily producing), with a view to increasing cash flow immediately. As demonstrated by this acquisition, the Company is able to evaluate assets and close transactions quickly, using debt and equity.

In this regard, the Board continues to evaluate and progress numerous opportunities of different scales, consistent with the experience of the Directors, both inside and outside the USA. The current oil price environment provides opportunities for acquisitions at attractive valuations, and licensing of assets with significant upside potential.

Matt Lofgran, Nostra Terra 's Chief Executive Officer, said:
"Nostra Terra has acquired another asset that is immediately accretive, adding significant cash flow to the Company, achieved with non-dilutive financing. The Board is planning further growth in a similar fashion during the remainder of the year. We look forward to providing further updates in the future."

KeyFacts Energy Industry Directory: Nostra Terra